China's Ministry of Commerce has outlined a series of measures designed to strengthen and modernize the nation's retail industry. At a press conference focused on accelerating retail innovation, officials detailed plans encompassing financial backing, fiscal incentives, and talent development to support the sector's transformation.
Financial Institutions are encouraged to develop credit policies tailored to the specific characteristics of the retail sector. The ministry advocates for the effective utilization of policies supporting equipment upgrades for offline commercial facilities and loan interest subsidies for service sector businesses. Furthermore, qualified, high-quality retail enterprises will be supported in pursuing listings on capital markets. Retail entities meeting certain criteria will also be assisted in issuing asset-backed securities, and retail companies will be encouraged to participate in green certificate and green electricity trading to accelerate their development.
On the fiscal front, the ministry will integrate various policies to amplify their impact. This involves linking the retail innovation enhancement project with other national initiatives, such as the modern commercial circulation system pilot, new consumption formats pilot programs, and community convenience circle development. The goal is to leverage policy funds to guide and support tailored, store-by-store transformations.
Addressing talent needs, the ministry will encourage retail businesses to adopt more formal contract-based employment and expedite approval processes for positions eligible for special working hour systems. Collaboration between retail entities, educational institutions, and industry associations will be promoted to cultivate versatile, skilled retail professionals, who will be included in local lists of urgently needed talent. Eligible retail industry personnel will also be supported for inclusion in regional talent introduction policies to enhance their sense of achievement and recognition.
Officials emphasized that physical retail remains the foundation of the sector, a crucial base for commodity circulation, and a vital channel for market prosperity and employment. The new measures aim to concentrate resources, policies, and efforts on bolstering this segment of the economy.
The press conference also highlighted the current state and future direction of the retail industry. While significant progress has been made, the sector is at a critical juncture for transformation, facing challenges such as uneven layouts, supply-demand mismatches, high operational costs, and imbalances between online and offline channels. These issues have impacted overall profitability and consumer experience.
In response, the Ministry of Commerce, along with eight other departments, recently issued guidelines to accelerate retail innovation. The document outlines six key areas of action: systematic planning for new layouts, leading new retail supply, creating new consumer demand, stimulating new retail momentum, fostering a new competitive environment, and strengthening new policy safeguards. It includes 20 specific policy measures aimed at using innovation to drive development and promote the sector's accelerated transformation.
A key objective is to form a modern retail system by 2030 characterized by rational layout, high-quality supply, diverse formats, smart convenience, and orderly competition. The vision includes developing influential retail scenes, promoting integrated and innovative business models, and cultivating internationally competitive retail enterprises.
Separately, officials discussed the relationship between online and offline retail, acknowledging both as essential components. While online retail offers advantages like product variety and convenience, it has also exposed regulatory challenges. Physical retail retains unique strengths in experiential consumption and quality assurance but needs to adapt proactively. The guidelines encourage mutual empowerment and integration between the two, advocating for fair competition and a unified regulatory approach to ensure a level playing field and foster high-quality development across the entire retail landscape.